Definition of credit application

oral or written request for an extension of credit, following the lender's procedures for the credit requested. Information regarding the cost of credit must be disclosed, such as the Annual Percentage Rateunder Federal Reserve Regulation Zwhen a consumer formally applies for credit. A completed application means the lender has received all the information ordinarily received in evaluations for the amount and type of credit requested, including credit reports from a credit bureau, government guarantees, or approvals to insure or provide security for the credit. An application fee may be charged to cover loan processing and property appraisal costs, as in a mortgage. Advances under an existing credit arrangement, or rate shopping generally are not considered applications for credit, and do not require truth in lendingdisclosures by the lender.